japanese and chinese officials can't agree on what if anything happened between their defense forces on the high seas that created high tension. u.s. transportation investigators say flawed battery design could be behind the problems of the 787 dreamliner as the manufacturer wins approval for test flights. and a new type of bullet train is racing along the rails in japan.

the latest has upgrades that enhance safety in the event of an earthquake. i'm gene otani in tokyo. welcome to "newsline". japanese and chinese leaders are locked in a back and forth debate that appears to be going nowhere. china defense ministry issued a statement denying reports that they used fire-control radars in the east china sea. the statement refers to two separate incidents on january 19th. it admits crews on chinese frigate tracked a japanese helicopter because it approached their vessel. in the second case on january 30th the statement says a chinese ship monitored a destroyer that was following it at close range. but the statement denies chinese crews used fire-control radar in either instance pinpoint says officials in tokyo released false reports without confirming

the facts with their counterparts in beijing. a spokesperson for the chinese foreign ministry also denied japan's claim. >> translator: the departments have published the true facts. the japanese claims are complete fabrication. >> later on friday japan's vice sworn summoned china's minister to protest the denials. he's going to reinvestigate the case. security analysts in asia and elsewhere have been tracking the twists and turns of this story. former japan self-defense navy captain gave us his take on what china's denial means moving forward. >> japanese leaders should be happy because chinese defense officials deny using fire-control radar which can direct missiles.

this shows china agrees with japan that using the type of radar is potentially dangerous. admitting to use fire-control radar would have invited international criticism, proving exactly what happened in the east china sea in january has turned out to be difficult. japanese defense analysts spent a week going over electronic data. in the end they concluded that chinese navy did use weapons radar. they can prove the radar came from a chinese ship but they cannot prove without a doubt where the destroyer was when the radar locked on happened or even when it happened. it's possible to damp with this kind of data that's why chinese officials say japanese got it

wrong. what can we take from the outcome of this instance is that chinese leaders will likely prohibit the military from using weapons radar from now on. but they cannot stop all of aggressive behavior towards japan. communist party leader is the head of military but chinese commanders have a lot of authority and can act on their own. japanese defense forces need to be cautious and continue to carefully monitor the movement of chinese forces in this region. security analysts and former navy captain. and as japanese officials are at odds with china over an incident at sea they criticized russia for something they said happened in the air. defense analysts say russian military planes entered japanese airspace but, again, facing denials. the analysts say russian war

planes briefly entered the war space on thursday. they say it happened southwest in the northern prefecture of hokkaido. jets scrambled to intercept the aircraft. japan's foreign ministry lodged a protest. officials with russia's defense ministry denies japan's claim. japanese officials plan to exchange data they obtained about the incidents with their russian counterparts. they say they will try to determine what really happened. u.s. transportation investigators have cast doubt on the quick fix for the problems facing the dreamliner. they say regulators need to rethink their approval of batteries used in the boeing 787. official from a number of agencies are looking into a string of safety incidents. deborah herschman said an ion

battery sparked a fire in boston. >> this investigation has demonstrated that a short circuit in a single cell can propagate to adjacent cells and result in smoke and fire. >> engineers packaged eight cells together in designing the battery system for the dreamliner. hersman said they didn't place them far enough apart so trouble in one of them could affect the others. she said investigators have not determined why the battleries short circuited. another battery fire forced the pilot of a nippon dreamliner to make an emergency landing in western japan. u.s. authorities gounded all 787s, officials at boeing estimated the batteries were likely to cause smoke only once in every 10 million flight hours. a new type of bullet train

has taken to the rails that increase safety in the event of a massive earthquake. the central japan railway company operates the new train. it's an upgraded version of the n 700. the first train left tokyo station on friday morning as a large number of railway fans looked on. the new model's top speed remains 270 kilometers per hour. it boasts an improved braking system. the new model emphasizes safety in response to earthquakes and other contingencies when stopping time is crucial. the n 700a's computer system maintains a constant speed regardless of terrain. earthquakes have long posed a major safety challenge for japan's bullet trains. the new model has a very

important feature. it can stop faster. typically when brakes are applied while a train is traveling at high-speed friction heats them up to high temperatures. the brake disks can become deformed. the new brakes won't do that. it took six years to develop. the older model is running at its top speed of 270 kilometers per hour and the brakes applied suddenly it takes three to four kilometers to come to a stop. the new braking system reduces the stopping distance by about 300 to 400 meters. a magnitude 6.8 quake that hit in 2004 caused a bullet train to derail. no one was hurt. the incident underscored the importance of developing trains that could stop more quickly. the new system also allows the brakes to be applied with more force if the train loses power after an earthquake is detected. >> translator: damage can be

reduced if the cars can be stopped as soon as tremors are detected. >> modifying the braking system was a big challenge but he said it was needed to protect the people who use one of japan's most important modes of transportation. government officials in the solomon islands are mounting a relief effort for survivors of this week's tsunami. an earthquake on wednesday sent waves rushing towards shore. nine people have been confirmed dead, a rescue team have arrived to help survivors. we have the latest from the capital. >> reporter: emergency crews have gathered up what they will need for a rescue mission. they see what happened to people in coastal areas and they want to do what they can to help. a magnitude 8 earthquake struck on wednesday off the island of

nendo. tsunami reached 90 centimeters as it barreled into the coast. homes of people were destroyed or damaged. many residents fled to higher ground. local media say the survivors fear for tsunami. and are reluctant to return home. government officials dispatched a plane full of relief workers. the after shock magnitude 6.0 and made the plane to turn around. later in the day the team of 20 relief workers from australia and other countries tried again. the survivors are concerned about strong after shocks. six years ago a similar sized earthquake hit the region so residents are well aware of the power of nature. officials in seoul announced earlier this week the discovery

of a blueprint for a north korean test site. they said the documents appeared in a documentary three years. authorities in pyongyang are denying the claims. they say the diagram was pure fiction. south korean officials say the blueprint unveiled monday represent as tunnel where a nuclear test was conducted in 2009. north korean authorities have denied the allegation through a video posted online. they say the diagram is part of an imaginary scene depicting a character's dream. they add it is foolish to believe north korea would leak such an important secret in a movie. south korean defense officials suspect north korean authorities are preparing another nuclear test. they say the test could be held in a tunnel with a structure similar to the blueprint. japan has recorded a current

account deficit for a second straight month. it's the first time the country has been in the red for several months in a row since officials started keeping track the way they do now. finance ministry officials say the current account deficit for december was $2.8 billion. the trade balance registered a deficit of about $6 billion. exports fell 6.9%. imports were up 0.8% in yen terms over the previous year. the current account surplus for 2012 turned out to be the smallest. the surplus fell 50.8% from the previous year to $50.2 billion. china's total amount of trade soared about 27% jayne from a year earlier. but it's trade with japan posted much smaller growth. china's customs data shows its exports totalled more than $180

billion last month, up 25%. the country imported about $160 billion worth of goods showing an increase of about 29%. the total amount of trade came to about $345 billion surging nearly 27%. officials attribute the jump mainly to a dent in the same month last year, the lunar new year holidays fell in january in 2012. trade with japan grew slightly more than 10%. that suggested bilateral ties soured over a territorial dispute. on the on the other hand japan's trade with southeast asian nations climbed almost 43%. the data showed that china's trade with this high growth region is expanding further. here's another key economic indicator from china. official statistics show consumer prices remain stable in january. the national bureau of

statistics says the january consumer price index ticked up 2% from a year earlier slowing down from a 2.5% rise in december. bureau officials say food prices which have a big impact on the overall price trend showed only moderate growth. meanwhile china's producer price index fell 1.6% jayne. the pace of decline was slower than in the previous four months. that's considered to be a sign the country's economic recovery. meanwhile china's stock markets traded higher friday's data as well as recent indicators stoked investor optimism about the country's economic outlook. shanghai shares gained 0.57%. the benchmark composite index stayed at the highest level since may last year. hong kong shares inched higher gaining 0.16%. earlier this week the hang seng index touched the highest point in nearly two years.

china's better than expected trade data seemed to be fueling investor hopes for further economic growth. for more on what's happening in the world's second best economy earlier or shery ahn speaking with the director of research in hong kong. >> thank you for joining us. first of all do you think this pace of economic growth as well as this optimism in financial markets will continue? >> yes. we are talking about those economic data released recently in china, the pmi and export/import data were better than expected but the shanghai composite index has risen 24% from a three year low in december from last year. so anything negative news, no matter from a company or in the economic perspectives can pull back the stock market a little

bit because now the shanghai composite index has a price earning ratio is trading at 13.4 times which is low but the highest in 1 1/2 years. so i guess a little pull back is needed in the next week or two. >> china has many issues at this point that could be a drag on growth, rising labor costs, asian population, geopolitical risks. how will the incoming administration when it takes office in march tackle these problems and would it be able to avoid not disappointing investors? >> well, i think chinese government will continue to introduce easing measure policy and the monetary policy like an interest rate cut and cut on the reserve ratio it needed because we can see the cpi now is for a

couple of months only 2%. so i think it gives more room for chinese government to act more easy monetary policy and also the sfc has introduced increa increased qualifications for foreign institutional investor. they will attract more money from outside china. also in hong kong. so i think this is a positive in the long run. that was the executive director of research at kingston securities in hong kong. now let's take a quick look at currencies as well as tokyo stocks. the euro is lower against the yen the european central bank's president mario draghi expressed caution. the euro yen is squatted at 123.99-02. currently trading -- the dollar is losing ground against the

japanese currency currently trading at the he 92 yen level. tokyoo stock prices were lower. the nikkei shed 1.8%. it prompted investors to take profits. leading japanese automakers have raised their annual profit forecast. the yen's fall is helping them to do better in overseas markets. toyota motors, suzuki, mazda and fuji heavy industries revised their estimates up for fiscal 2012 that ends in march. the yen's fall is expected to push up toyota's profit by $1.5 billion. and fuji heavy industries to $252 million. makers of the heavy reliance on exports are benefiting more from the japanese currencies weakness. sales of nissan and honda levelled off but the companies have kept their earlier profit projections due to better export margins.

mitsubishi lowered their profit expectations. struggling semiconductor maker renesas is expected to slide into the red. it says it's likely to report an operating loss of $280 million in this fiscal year. previously it forecast a profit of some $225 million. the chip maker revised down its sales for the year by 6% to $8.3 billion. company executives explained that demand for semiconductors used in cars and personal computers is falling in china and europe and hurting its performance. this would be a second straight year for renesas to post an operating loss. the company is expected to receive $1.6 billion in a government back turn around fund in the near future. the 2011 nuclear accident in fukushima and huge power shortages that followed have

prompted calls to change japan's approach to providing electricity. now a government panel is proposing some key ideas that could potentially transform japan's energy policy. >> reporter: after a year long debate the panel presented its report to the government. >> translator: the government must successfully overhaul the electricity system to live up to the people's expectations. >> reporter: japan's energy system remains a monopoly. they operate independently and rarely provide power to one another. the utility companies have maintained that this is the best way to secure a stable power supply. but the nuclear disaster exposed problems with this approach.

tepco failed to provide enough power dome pen said for the loss of fukushima. there were rolling blackouts in the capital. public confidence eroded. in response the former government set up the reform panel. friday's report included three main recommendations. one, increase competition by bringing new generators to the market by 2016. two, set up an organization to improve connections between power grids. finally split up power generation and transmission operations as early as 2018. the panel says these measures will give consumers more choice, that it will create better opportunities for more power sources such as renewables to enter the market but these are merely suggestions. how they will be implemented remains to be seen.

last year's election brought the democratic party back to power. they failed to push through reforms in the 1990s. bowing to first lobbying from opposition. >> translator: power utilities wield a lot of influence over various stakeholders. you can't move over with reforms like these without political decisions at the top, decisions at the ministerial level are insufficient. >> reporter: after witnessing one of the worst nuclear accidents in history, the question for many japanese is not whether to reform, but how. now all eyes are on the prime minister. people wondering if he will be able to shake his party free from old regulations and take the party down to a new path to

reform. thousands of people waiting to go home. tons of debris waiting for disposal. vast tracts of land waiting to be restored. overcoming the challenges of japan's 2011 disaster won't be easy. but step by step people are moving forward. find out how on the ""road ahead"" right here on "newsline". people in northern u.s. are bracing for the worst winter storm to hit the area this season. robert speta is here with the forecast. robert? >> that's right. anybody who is traveling in and out of the area, it is really just going to be a one hazardous day here on friday going into saturday. already the airports in and out of boston over towards new york these have been almost closed,

all flights in and out have been cancelled. over 3,000 flights, several hundred thousand people have been affected by the storm system not to mention the schools have been closed and the governor of massachusetts have asked people to just stay in and stay off the roads as this storm system comes in overhead and due to a few factors. we have the alberta clipper moving across the great lakes. this has brought some heavy snowfall across the great lakes about 30 centimeters enhanced here down here by lake erie. as it pushes to the east we have this other one that brought rough weather in the southeast. that's running up the coast lining. once these two interact with each other it will become a strong storm system. 60 centimeters of snow. quite uncommon for place like boston along the eastern portions of new england here. 110 kilometer per hour winds. creating white out conditions. if it wasn't bad enough with those you have these hurricane

force winds. temperatures out here going to be bitter cold wind chill not to mention the fact that right near the coastline there's a risk of storm surge and coastal flooding. a very serious storm already. prep regulates are in place for this one as it pushes overhead going through friday evening and into saturday and needless to say boston you're going to see blizzard conditions. temperatures at minus 4 here for your high on saturday. washington, d.c. still the rain. doesn't look like the freezing level will dip down as far south as you but still windy conditions going into your saturday as well. now i want to talk about japan because we're also seeing heavy snow here in hokkaido. blizzard like conditions continuing to push on shore. i want to show you a video coming out of hokkaido. see these waves crashing ashore. in the town where this video is coming out of, 180 kilometer per hour winds were recorded, 60s centimeters of snow coming down. very strong and potent storm

system. people in the ice festival you're feeling the effects of this. the difference between this and the u.s. here in hokkaido this is typical. not quite uncommon but a strong storm system and not something you want to be caught outside just for too long here. even farther down the south we're seeing 60 centimeters of snow in the forecast, 60 to 80 kilometer per hour winds as well. temperatures are cooling off. cool air coming from the north. tokyo 8. seoul minus 4. beijing just getting up above the freezing mark going into saturday. let's take a look at europe. let's talk about the british isles. relatively decent weather. some on off showers all week. really cold air is continuing to spill in from the north but it looks like going into sunday that's going to change. we have another storm system coming in that's going to give us windy conditions. still seeing windy conditions due to a series of storm systems across mediterranean. italy and greece.

one wind report in greece up to 80 kilometers per hour. this will shift off towards the north and eastern europe and see some snowfall accumulate up in moscow where the high is at 2 degrees. warsaw 1. in london and paris 5 and 6 but a nice mild 10 degrees to start off your weekend there in madrid. that's a look at your world weather here's the extended forecast.

for all of us here at "newsline" i'm james tangan. thank you for joining us